Paragon Bank has added £1,000 cashback to 21 buy-to-let mortgage products, widening the offer across five-year fixes for landlords buying or remortgaging single lets, HMOs and multi-unit blocks.
The move matters because it gives landlords a direct contribution toward completion costs at a point when many are still weighing whether to refinance now or wait for further rate cuts. Cashback does not change the headline rate, but it can improve the overall cost picture for borrowers facing valuation fees, legal bills and other upfront charges.
For landlords, this is another sign that lenders are competing harder on overall product value rather than rate alone. In a market where many deals still come with chunky fees, a £1,000 payment on completion could make a noticeable difference for some borrowers, especially on remortgages where speed and total cost matter as much as headline pricing.
Paragon extends cashback across more five-year fixes
Paragon said the cashback now applies to 21 products in its buy-to-let range, covering single self-contained properties as well as HMOs and multi-unit blocks. The selection includes percentage-fee and nil-fee options, free valuation, and products available for both purchases and remortgages.
The lender has also included five-year fixed products from its Tailored range, which is designed to give brokers more flexibility on complex landlord cases. That broadens the appeal beyond standard borrowing and suggests Paragon wants the cashback offer to support both mainstream and specialist applications.
James Harrison, mortgages product manager at Paragon Bank, said demand for cashback products had stayed strong, particularly within the lender’s two-year fixed range, where lower cashback options had already been well received by brokers and landlord clients. He said extending the offer across a wider group of five-year products, and lifting the amount to £1,000, should give landlords more help with transaction costs while still allowing them to choose the fee structure that best suits their plans.
That point matters because cashback can look more attractive in a slower market where landlords are scrutinising every part of the refinance or purchase bill. A product with a slightly higher headline rate may still stack up if the fee structure is lighter and completion incentives reduce cash outlay at the start.
Landlords still need to look beyond the headline incentive
Cashback can improve a deal, but it is not a shortcut to value. Landlords still need to weigh the fixed rate itself, the loan-to-value band, the fee level and how long they expect to hold the mortgage. Recent lender competition has already pushed pricing lower in parts of the market. Landlord Knowledge’s latest coverage of TMW’s 4.09 percent limited company cut showed that some of the keenest headline rates still come with high fees, while its recent report on Paragon’s tracker switches and further advances highlighted how lenders are trying to differentiate on flexibility as well as price.
The same pattern is visible here. Paragon is not just trimming rates. It is using cashback to make five-year fixes look more workable for landlords who want certainty while keeping a close eye on their upfront costs. For some borrowers, especially those remortgaging larger portfolios or specialist stock, that could be enough to swing the decision.
Landlords considering the offer should still compare the total cost over the fixed term and check whether a fee-heavy lower-rate product, or a more flexible alternative, works better for their plans. Full product details are available on Paragon Bank’s intermediary buy-to-let mortgage page.
This follows Landlord Knowledge’s June report on Paragon’s wider tracker push, which showed the lender broadening options for existing borrowers as refinancing activity builds. The latest cashback move suggests that competition is now spreading from pure rate cuts into added-value features that can help landlords manage transaction costs more directly.
What this means for landlords
- If you’re remortgaging this summer: compare total costs, not just the fixed rate, because cashback and fee structure can change the best-value option.
- If you own HMOs or multi-unit blocks: the offer is relevant to specialist stock as well as single lets, which may widen your refinancing options.
- Bottom line: lender competition is no longer only about shaving rates – incentives such as cashback are becoming part of the deal.
Editor’s view
Cashback is not a game-changing headline on its own, but it is a useful marker of where the market is moving. Lenders know landlords are still cost-sensitive, and the next phase of competition may be decided as much by structure and incentives as by rate cuts.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 1 July 2026
Sources: Paragon Bank, Paragon Bank intermediary website
Related reading: Paragon adds tracker switches and further advances from 23 June
